diff --git a/src/components/launch/LaunchWindow.tsx b/src/components/launch/LaunchWindow.tsx
index 2c4e6146..a9403304 100644
--- a/src/components/launch/LaunchWindow.tsx
+++ b/src/components/launch/LaunchWindow.tsx
@@ -1,27 +1,27 @@
 import {
 	AppWindow,
 	ArrowCircleUp as ArrowUpCircle,
-	ArrowClockwise as RefreshCw,
-	CaretUp as ChevronUp,
 	CheckCircle as CheckCircle2,
-	DotsThreeVertical as MoreVertical,
+	CaretUp as ChevronUp,
 	Eye,
 	EyeSlash as EyeOff,
 	FolderOpen,
+	Translate as Languages,
 	Microphone as Mic,
 	MicrophoneSlash as MicOff,
 	Minus,
 	Monitor,
+	DotsThreeVertical as MoreVertical,
 	Pause,
 	Play,
-	SpeakerHigh as Volume2,
-	SpeakerX as VolumeX,
+	ArrowClockwise as RefreshCw,
 	Stop as Square,
 	Timer,
-	Translate as Languages,
 	VideoCamera as Video,
 	VideoCamera as VideoIcon,
 	VideoCameraSlash as VideoOff,
+	SpeakerHigh as Volume2,
+	SpeakerX as VolumeX,
 	X,
 } from "@phosphor-icons/react";
 import { AnimatePresence, motion } from "motion/react";
@@ -41,6 +41,10 @@ import { ContentClamp } from "../ui/content-clamp";
 import ProjectBrowserDialog, {
 	type ProjectLibraryEntry,
 } from "../video-editor/ProjectBrowserDialog";
+import {
+	mergeHudInteractiveBounds,
+	shouldRestoreHudMousePassthroughAfterDrag,
+} from "./hudMousePassthrough";
 import styles from "./LaunchWindow.module.css";
 
 interface DesktopSource {
@@ -465,7 +469,26 @@ export function LaunchWindow() {
 		if (event.currentTarget.hasPointerCapture(event.pointerId)) {
 			event.currentTarget.releasePointerCapture(event.pointerId);
 		}
-		if (wasDragging) {
+		const hudBounds = mergeHudInteractiveBounds(
+			[
+				dropdownRef.current?.getBoundingClientRect(),
+				hudBarRef.current?.getBoundingClientRect(),
+				recordingWebcamPreviewContainerRef.current?.getBoundingClientRect(),
+			].map((bounds) =>
+				bounds
+					? {
+							left: bounds.left,
+							top: bounds.top,
+							right: bounds.right,
+							bottom: bounds.bottom,
+						}
+					: null,
+			),
+		);
+		if (
+			wasDragging &&
+			shouldRestoreHudMousePassthroughAfterDrag(hudBounds, event.clientX, event.clientY)
+		) {
 			window.electronAPI?.hudOverlaySetIgnoreMouse?.(true);
 		}
 	};
diff --git a/src/components/launch/hudMousePassthrough.test.ts b/src/components/launch/hudMousePassthrough.test.ts
new file mode 100644
index 00000000..9490b054
--- /dev/null
+++ b/src/components/launch/hudMousePassthrough.test.ts
@@ -0,0 +1,46 @@
+import { describe, expect, it } from "vitest";
+
+import {
+	mergeHudInteractiveBounds,
+	shouldRestoreHudMousePassthroughAfterDrag,
+} from "./hudMousePassthrough";
+
+const hudBounds = { left: 100, top: 200, right: 300, bottom: 260 };
+
+describe("mergeHudInteractiveBounds", () => {
+	it("returns null when there are no interactive bounds", () => {
+		expect(mergeHudInteractiveBounds([null, undefined])).toBeNull();
+	});
+
+	it("merges the dropdown, bar, and webcam preview bounds", () => {
+		expect(
+			mergeHudInteractiveBounds([
+				{ left: 120, top: 220, right: 260, bottom: 320 },
+				{ left: 100, top: 200, right: 300, bottom: 260 },
+				{ left: 140, top: 280, right: 340, bottom: 430 },
+			]),
+		).toEqual({ left: 100, top: 200, right: 340, bottom: 430 });
+	});
+});
+
+describe("shouldRestoreHudMousePassthroughAfterDrag", () => {
+	it("keeps the HUD interactive when the pointer is still inside the HUD", () => {
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 180, 230)).toBe(false);
+	});
+
+	it("keeps the HUD interactive when the pointer ends on the HUD edge", () => {
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 100, 200)).toBe(false);
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 300, 260)).toBe(false);
+	});
+
+	it("restores passthrough when the pointer ends outside the HUD", () => {
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 99, 230)).toBe(true);
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 180, 199)).toBe(true);
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 301, 230)).toBe(true);
+		expect(shouldRestoreHudMousePassthroughAfterDrag(hudBounds, 180, 261)).toBe(true);
+	});
+
+	it("restores passthrough when no HUD bounds are available", () => {
+		expect(shouldRestoreHudMousePassthroughAfterDrag(null, 180, 230)).toBe(true);
+	});
+});
diff --git a/src/components/launch/hudMousePassthrough.ts b/src/components/launch/hudMousePassthrough.ts
new file mode 100644
index 00000000..5d972f55
--- /dev/null
+++ b/src/components/launch/hudMousePassthrough.ts
@@ -0,0 +1,39 @@
+export interface HudInteractiveBounds {
+	left: number;
+	top: number;
+	right: number;
+	bottom: number;
+}
+
+export function mergeHudInteractiveBounds(
+	bounds: Array<HudInteractiveBounds | null | undefined>,
+): HudInteractiveBounds | null {
+	const presentBounds = bounds.filter((value): value is HudInteractiveBounds => Boolean(value));
+	if (presentBounds.length === 0) {
+		return null;
+	}
+
+	return presentBounds.reduce((merged, current) => ({
+		left: Math.min(merged.left, current.left),
+		top: Math.min(merged.top, current.top),
+		right: Math.max(merged.right, current.right),
+		bottom: Math.max(merged.bottom, current.bottom),
+	}));
+}
+
+export function shouldRestoreHudMousePassthroughAfterDrag(
+	bounds: HudInteractiveBounds | null,
+	clientX: number,
+	clientY: number,
+): boolean {
+	if (!bounds) {
+		return true;
+	}
+
+	return (
+		clientX < bounds.left ||
+		clientX > bounds.right ||
+		clientY < bounds.top ||
+		clientY > bounds.bottom
+	);
+}